Only 100 applications received in 4 years for lease renewal in Mumbai island city

Of these leased properties, over 300 are in Mazgaon. The area, much before Malabar Hill and others were developed was the city’s most plush area and was known as the state estate.Clara Lewis | TNN | November 22, 2016, 12:30 IST

MUMBAI: Only 100 applications have been received in the last four years for renewal of lease by the island city collector’s office.In 2012 the collector’s office had issued a public notice to 691 lessees to renew the lease which had expired. Now the lease is being renewed for 30 years. Of these leased properties, over 300 are in Mazgaon. The area, much before Malabar Hill and others were developed was the city’s most plush area and was known as the state estate.

In 2013 it was estimated that the collector’s office would earn the government a revenue of Rs 8,500 crore. The consideration was that there would be at least one breach in lease conditions besides the charging of ready reckoner rate would bring in the windfall. Four years later the revenue is still to come. The slow pace of lease renewal is proving a hurdle in the government earning revenue.“The earlier procedure was that the collector’s office would collect the information, hold hearings and then forward all the details to the government. The final decision on renewal would be taken by the government. Of the 100 proposals so far only seven to eight have been decided,” said Ashwini Joshi, Mumbai city collector.

This year the government decided it was best that the collector’s office take a decision on all the applications. Joshi said her office has filed a first information report in two cases for breach of lease conditions, attached property in one case, which has been challenged in the Bombay high court.